Monday, August 8, 2011

Energy Subsidies Report

Angola : Cut gasoline and diesel subsidies in September, 2010, leading to a price increase of 50% and 38% for gasoline and diesel respectively.Argentina : Proposes to reduce household subsidy for propane gas as natural gas access is expanded.Bolivia : In early January 2011, reversed reductions in subsidies for gasoline, diesel and jet fuel due to mounting political pressure, strikes and demonstrations.China :Oil product prices were indexed to a weighted basket of international crude prices in 2008. Natural gas prices increased by 25% in May 2010. China has already removed preferential power tariffs for energy-intensive industries.Chile. In early January 2011, a planned reduction in subsidies for natural gas in the country’s southernmost Magallanes region was revised due to ongoing protests. Egypt:Plans to eliminate energy subsidies to all industries by the end of 2011. India :Abolished gasoline price regulation in June 2010 and plans to do the same for diesel. The price of natural gas paid to producers under the regulated price regime was increased by 230% in May 2010. State-owned Coal India Ltd. announced that it would benchmark its premium grade coal to world prices.Indonesia: Indonesia's parliament approved in December 2010 to stop private cars using subsidised fuel from March 2011 onwards. Plans to reduce spending on energy subsidies by 40% by 2013 and fully eliminate fuel subsidies by 2014. Electricity tariffs were raised by 10% in July 2010. Has an ongoing programme to phase out the use of kerosene in favour of LPG.Iran :Dramatically reduced energy subsidies in December 2010 as the start of a 5-year program to bring the prices of oil products, natural gas and electricity in line with international market- levels. Cash payments are being provided to low-income groups to help them cope with the increases in energy prices. Jordan Announced an expansion of their subsidy program in January 2011 by reducing kerosene prices (by 6%) and gasoline prices (by 5%).Malaysia In July 2010 started reducing subsidies for petrol, diesel and LPG as the first step of a gradual reform programme. Subsidies for RON 95 and diesel were reduced by 5 sen per liter. LPG subsidies were reduced by 10 sen per kilogram. RON 97 is no longer subsidised. Mexico: Subsidies to gasoline and diesel are expected to disappear by the end of 2010, and the gap between domestic and international LPG prices is expected to close in 2012.Nigeria :Plans to remove subsidies on petroleum products by December 2010, or at the latest by the end of 2011.Pakistan: Plans to phase out electricity subsidies and has implemented a tariff increase of around 20% in 2010.Russia :Natural gas prices for industrial users are to continue increasing toward international levels through 2014 based on the balancing of revenues from domestic and export sales. Pricing in the wholesale electricity market is scheduled to be fully liberalised in 2011.South Africa: Plans to increase electricity tariffs by approximately 25% per year over 2010-2013.Syria: Announced an expansion of their subsidy program in January 2011 by increasing the heating oil allowances for public-sector workers by 72%.Thailand :Plans to deregulate LPG prices for the industrial sector starting in July 2011, but will continue to subsidise the fuel for the household and transport sectors.UAE :Commenced reducing gasoline subsidies in April 2010 as part of a plan to bring them in line with international market levels. Diesel prices are already largely deregulated.Ukraine ÇRaised gas price for households and electricity generation plants by 50% in August 2010 and plans to raise them by another 50% from April 2011